NBFC Stock Locked In Upper Circuit, Share Price Below Rs 1; Do You Own?

With a market value of Rs 114.80Cr, the shares of penny stock below Rs 1 Srestha Finvest were locked in an upper circuit limit on Wednesday at Rs 0.70 per share. This followed the BSE's approval of the NBFC company's plan to issue 93,00,00,000 warrants to non-promoters on a preferential basis, convertible into equity shares of Re. 1 apiece, at a minimum price of Rs. 1.05/-.

.

Special resolutions were presented at the EGM to raise funds by issuing equity shares to qualified institutions and putting them in the hands of eligible investors; issuing fully convertible equity warrants on a preferential basis; and considering and approving an increase in the company's borrowing limits.

Srestha Finvest Latest News

Srestha Finvest, a small-cap firm in the NBFC sector, has issued its financial results for the quarter that ended on September 30, 2024. The company's operating revenue increased from Rs 2.10 Cr in Q2FY24 to Rs 3.57 Cr in Q2FY25. The organization's expenses for Q3FY25 were Rs 19.37 Cr, up from Rs 5.40 Cr in the same time the previous year. From the same quarter of the previous fiscal year, Srestha Finvest's net loss increased from Rs 3.29 Cr to Rs 14.81 Cr. The financial data for the quarter that ended in December 2024 have not yet been released by the firm.

The company recently authorised the raising of capital through Qualified Institutional Placement (QIP) on October 09, 2024, by issuing a certain number of equity shares with face values of Re.1/-each, for a total of no more than Rs. 100 Crores. Additionally, at an issue price of Rs. 1.05/-each, including the premium of Rs. 0.05/-each, the Board authorised the issuance of up to 93,00,00,000 convertible warrants of Rs. 1.

The company's board of directors authorised a 1:2 stock split in July of this year for which the record date was 23/09/2024. The penny stock announced a stock split for the second time. This stock was trading ex-split at a 1:5 ratio on October 13, 2016.